Reverse DCF
What growth does the market imply for CESC?
Working backwards from the current price to find the FCF growth assumption baked in.
aggressive
17.3% implied annual FCF growth
The market is pricing in above-average growth. Achievable for a high-quality business but leaves limited margin for error — any slowdown could hurt the price.
Current Price
₹165
Historical Growth
12.0%
FCF Yield
3.28%
Price / FCF
30.5x
Plain English
To justify today's price of $165.20, CESC.NS needs to grow its free cash flow at 17.3% per year for the next 10 years. That is 5.3% faster than its historical growth rate of 12.0%. This is optimistic but not impossible for a high-quality business. The stock leaves little room for error — any slowdown could hurt the price.
Adjust Assumptions
Growth Scenarios
What the stock is worth at different growth assumptions
| Scenario | FCF Growth | Implied IV | MoS vs Price |
|---|---|---|---|
| Half implied | 8.6% | ₹23 | -86.0% |
| GDP rate | 10.0% | ₹39 | -76.1% |
| Historical | 12.0% | ₹67 | -59.5% |
| Implied | 17.3% | ₹164 | -0.6% |
At Historical Growth Rate
It would take 20 years for CESC to organically grow into today's price assuming its historical FCF growth of 12.0%.
See full DCF analysis
Bear/base/bull scenarios, sensitivity heatmap, Monte Carlo, and more.
Run Full Analysis →This is an analytical tool, not investment advice. Implied growth is a mathematical inversion of the DCF model and depends on WACC and terminal growth assumptions. YieldIQ is not registered with SEBI as an investment adviser.